What Is a SPAC, Anyway? The alternative means of going public has drawn the interest of several boutique electric car companies—and likely will continue to do so. By Jim Motavalli Erik McGregorGetty Images The basic workings of a Special Purpose Acquisition Company (SPAC) is, as the name implies, an entity created for no other purpose than to merge with an existing company that wants to go public. The SPAC, also known as a “blank check company,” raises capital through an initial public offering (IPO) and puts the money in trust for the purchase. Investors bet that down the road the merged entity—the existing company, now public—will have greatly added value. Typically, the merger, or “de-SPAC,” has to take place within 24 months.